Grants and incentives for Agricultural Projects. Nathan Rudgers Director of Business Development
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1 Grants and incentives for Agricultural Projects Nathan Rudgers Director of Business Development
2 Why Do Government Agencies and Others Offer Grants? 1. Meets a Public Interest 2. Achieves a Public Good Examples Environmental Improvements Renewable Energy Objectives Creation of Jobs
3 There are few simple criteria to consider as you seek grant or incentive assistance for your project First, consider: The likelihood of success of the project Is there a good business plan in place? Is the project sufficiently capitalized without grant assistance Your project s needs are secondary to Government Interest
4 Criteria to consider cont. Then consider: Size of the project Small garners attention and additional points-ease of application Large garners more assistance-more competition Development Challenges Infrastructure Resources Capital
5 Criteria to consider cont. Finally, consider: Timing Most grants do not cover work already completed Success = working together from the start
6 Background Considerations Utilities and their role in your project Service Upgrades Know the rules-use them to your advantage Pay the cost vs. offer a letter of credit Economic development incentives Jobs related Specific to agriculture projects Interconnections-again, know the rules Net Metering Line Capacity CISER Studies
7 Grant Opportunities for Farmers -Federal USDA Rural Business-Cooperative Service Value Added Agricultural Product Market Development Grant Program (VAPG) Purpose: encourage producers of commodities to refine products to increase value feasibility studies, business and marketing plans, studies to establish venture. Working capital to execute a project where B-MP and Feasibility are in place Eligibility: independent producers or producer associations of raw commodities Application deadline: Q will be next round Funding levels: up to $200,000 per proposal implementation, $75,000 Planning $63 Million Available Nationally (subject to Clarification)
8 Wineries (grapes to Wine) Start up Changing focus or new enterprise Cheese or Yogurt Producers (milk) Freezer Beef (cattle) Flour (wheat) New Apple Varieties (Apples which are segregated) Covers soft costs by providing working capital labels and packaging Labor for processing and sales activities Advertising and promotion Value Added Grant Project Examples
9
10 Grant Opportunities for Farmers - Federal USDA Rural Business-Cooperative Service - Rural Energy for America Program Purpose: help farmers and rural businesses purchase renewable energy systems and make energy efficiency improvements, create new uses for ag products and waste. Eligible projects: systems that generate energy from wind, solar, biomass, geothermal sources energy efficiency improvements-upgrade equipment or processes Eligibility: producers and businesses in city/town with population under 50,000; 50% gross income from farm production; business with fewer than 500 employees and $20 million in receipts Next application deadline: Spring 2014 Funding levels: up to 25% of project costs, maximum grant was $250,000 for energy efficiency; up to $500,000 for renewable energy $50 million available Nationally
11 Energy Efficiency Grain Systems In-bin and stand alone dryers Augers, elevators and other handling equipment Sand Separator systems Lighting, fans, etc. Renewable Energy Biomass or pellet boilers for heating greenhouses, etc. Anaerobic digesters Covers up to 25% of project costs Scoring based on simple payback of investment Small Farms receive extra points REAP Grant Project Examples
12
13 Other Federal Opportunities USDA Farm to School Grants Continues Efforts to Increase Local Foods in Eligible Schools Planning and implementation Farms help with logistics April 2, 2014 Deadline More information at USDA RD Rural Business Enterprise Grants (RBEG) Rules vary by State April 1, 2014 Deadline (New York) Need a Municipal Sponsor Other Farm Bill Programs-Maple, Specialty Crops
14 Grant opportunities for Farmers - State DOT funds Multimodal Industrial Access Office of Community Renewal (Community Development Block Grand Funds) $7,500-$15,000/job created Community infrastructure Job Creation incentives from State Economic Development Agency Energy Agency
15 Grant Opportunities for Farmers-State Energy NYSERDA- New York State Energy Research and Development Authority Programs Purpose: Several programs offer incentives and loans for farm-waste management; improved energy efficiency; solar and wind generation; and innovative business practices for energy use. Funding: varies with program Last application deadline: dates vary with program Information: ; toll free 800-NYSERDA, - look at current funding opportunities for project descriptions and who to contact for details
16 NYSERDA Programs Agriculture Energy Efficiency Program Up to 75% of cost of energy efficiency investment Capped at $250,000 New funding for program may be announced later this year Energy Audits are still available for no cost or low cost Used for REAP energy efficiency program Wind Turbine, Solar Photovoltaic and Solar Thermal Incentives 50% of cost of system CHP Systems New Facilities Program Existing Facilities Program
17 Grant opportunities for Farmers State Energy NYSERDA PON 2828 Anaerobic Digester Gas to Electricity New incentives for food waste New incentives for gas scrubbing technology New Installations are encouraged First Come/First serve Basis-$20,000,000 in funding $2,000,000 cap per project
18 Grant Opportunities for Farmers State Environmental NYS DEC and NYS Dept. of Ag & Markets Water Quality Improvement Projects Purpose: implement management programs, plans or projects including non-point source abatement and control (ag & non-ag), aquatic habitat restoration and pollution prevention. Eligibility: Municipalities & SWCD s Information: or contact your county SWCD for info on local funds
19 Key Concepts Match your project interest with the public interest Be prepared with a business plan and a capital strategy Look for the unusual Sources of funding Utilities Foundations USDA RD State Economic Development DOT Housing Energy Agency Environmental Agency Seek Professional Assistance
20 Thank You Nathan L. Rudgers Director Business Development Farm Credit East 4363 Federal Drive Batavia, NY (585) x.2239 (585) (F) (585) (C)
21 Photo Sources =AWIR#a qs=n&form=qbir&pq=renewable+energy+&sc=8-3&sp=- 1&sk=#view=detail&id=C8FEF71768BDD9A80FBBE618D85837 C77EAD0178&selectedIndex=2
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